<p>If on receiving a checking deposit of $300 a bank's excess reserves increased by $225, the required reserve ratio must be?</p>
<p>the answer is 15% .. how??</p>
<p>75/300 = 25... the book is wrong</p>
<p>If the bank's excess reserve is increased by 225, then 75 of the 300 is kept in the reserves due to the required reserve ratio.</p>
<p>Now, just calculate the percentage:</p>
<p>75/300 x 100% = 25%...</p>
<p>It's 25%, not 15%.</p>
<p>thx!! that's what i thought too</p>
<p>hahah, salik is one step ahead of me ;)</p>